TNM plc first-half profit dropped by three percent to K6.7 billion from K6.9 billion during the same period last year, blamed on depreciation expenses from investment in network infrastructure.
Unaudited financial results for the first-half of the year published on Thursday show that the Malawi Stock Exchange-listed firm achieved an eight percent growth in service revenue to K44 billion from the previous period’s K40.7 billion.
But net financing cost went up to K2.1 billion from K1.2 billion, a jump of about 68 percent, largely due to the effects of International Finance Reporting Standards (IFRS) 16 leases application which has resulted in some operating expenses reported under cost finance.
During the period, TNM invested K7.3 billion in network and systems for expansion, improvement and future use as data needs grow.
“The group continues with its strategy to become the preferred ICT provider in Malawi as it focuses on seamless customer experience, smart channel management and investment in appropriate technologies.
“Management will continue with cost-efficient initiatives to protect margins and profitability,” reads the statement accompanying the results jointly signed by chairperson George Partridge and chairperson of board audit committee John O’Neill.
Management of TNM, whose total assets have jumped from K88.8 billion to K91.7 billion, has declared a first interim dividend for the year ended December 31 2019 of K2.5 billion or 25 tambala per share.